Skip Navigation to main content U.S. Department of Energy U.S. Department of Energy Energy Efficiency and Renewable Energy
Bringing you a prosperous future where energy is clean, abundant, reliable, and affordableEERE HomeEERE Home
Alternative Fuels & Advanced Vehicles Data Center
About the AFDCFuelsVehiclesFleetsIncentives and LawsData, Analysis and TrendsInformation ResourcesHome
State and Federal Incentives and Laws

United States (Federal) State Flag

United States (Federal)

Air Pollution Control Program

The Air Pollution Control Program assists state, local, and tribal agencies in planning, developing, establishing, improving, and maintaining adequate programs for prevention and control of air pollution or implementation of national air quality standards. Plans may emphasize alternative fuels, vehicle maintenance, and transportation choices to reduce vehicle miles traveled. Eligible applicants may receive federal funding for up to 60% of project costs to implement their plans. (Reference 42 U.S. Code 7405)

Point of Contact

U.S. Environmental Protection Agency
Phone (202) 272-0167
http://www.epa.gov

Congestion Mitigation and Air Quality (CMAQ) Improvement Program

The CMAQ Improvement Program provides funding to state departments of transportation (DOTs), municipal planning organizations (MPOs), and transit agencies for projects and programs in air quality non-attainment and maintenance areas that reduce transportation-related emissions. Eligible activities include transit improvements, travel demand management strategies, traffic flow improvements, purchasing idle reduction equipment, development of alternative fueling infrastructure, conversion of public fleet vehicles to operate on cleaner fuels, and outreach activities that provide assistance to diesel equipment and vehicle owners and operators regarding the purchase and installation of diesel retrofits. State DOTs and MPOs must give priority to projects and programs to include diesel retrofits and other cost-effective emissions reduction activities, and cost-effective congestion mitigation activities that provide air quality benefits. For more information, visit the CMAQ Web site. (Reference 23 U.S. Code 149)

Point of Contact

Federal Highway Administration
U.S. Department of Transportation
http://www.fhwa.dot.gov/index.html

Clean School Bus USA

Clean School Bus USA is a public-private partnership that focuses on reducing children's exposure to harmful diesel exhaust by limiting school bus idling, implementing pollution reduction technologies, improving route logistics, and switching to clean fuels. Clean School Bus USA is part of the U.S. Environmental Protection Agency's National Clean Diesel Campaign and provides funding for projects designed to retrofit and/or replace older diesel school buses. Eligible applicants are school districts, state and local government programs, federally recognized Indian tribes, and non-profit organizations.

Point of Contact

Jennifer Keller
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone (202) 343-9541
keller.jennifer@epa.gov
http://www.epa.gov/cleandiesel/

Clean Construction USA

Clean Construction USA is a voluntary program that promotes the reduction of diesel exhaust emissions from construction equipment and vehicles by encouraging proper operations and maintenance, use of emission-reducing technologies, and use of cleaner fuels. Clean Construction USA is part of the U.S. Environmental Protection Agency's National Clean Diesel Campaign, which offers funding for clean diesel construction equipment projects.

Point of Contact

Trish Koman
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone (734) 214-4955
Fax (734) 214-4869
koman.trish@epa.gov
http://www.epa.gov/cleandiesel/

Clean Ports USA

Clean Ports USA is an incentive-based program designed to reduce emissions by encouraging port authorities and terminal operators to retrofit and replace older diesel engines with new technologies and use cleaner fuels. The U.S. Environmental Protection Agency's National Clean Diesel Campaign offers funding to port authorities and public entities to help them overcome barriers that impede the adoption of cleaner diesel technologies and strategies.

Point of Contact

Trish Koman
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone (734) 214-4955
Fax (734) 214-4869
koman.trish@epa.gov
http://www.epa.gov/cleandiesel/

Renewable Energy Systems and Energy Efficiency Improvements Grant

Competitive grant funding and guaranteed loans are available from the U.S. Department of Agriculture Office of Rural Development's Section 9006 Energy Program for the purchase of renewable energy systems and energy improvements for agricultural producers and small rural businesses. Qualified projects must occur in a rural area and implement technology that is pre-commercial or commercially available and replicable. Research and development does not qualify. Applicants must provide at least 75% of eligible project costs, and grant assistance to a single individual or entity may not exceed $750,000. Eligible projects include biofuels, hydrogen, and energy efficiency improvements, as well as solar, geothermal, and wind. The Section 9006 Energy Program has not been funded for Fiscal Year 2008. For more information, visit the Section 9006 Program Web site, and contact the appropriate State Rural Development Office. (Reference 7 U.S. Code 8106)

Point of Contact

Office of Rural Development
U.S. Department of Agriculture
Phone (202) 690-4730
http://www.rurdev.usda.gov/rd/energy/

Clean Fuels Grant Program

The Clean Fuels Grant Program assists designated ozone and carbon monoxide air quality nonattainment and maintenance areas in achieving or maintaining the National Ambient Air Quality Standards through grant funding. The program accelerates the deployment of advanced bus technologies by supporting the use of low-emission vehicles in transit fleets. The program assists transit agencies in purchasing low-emission buses and related equipment, constructing alternative fuel stations, modifying garage facilities to accommodate clean fuel vehicles, and assisting with the use of biodiesel. For more information, see the Clean Fuels Grant Program fact sheet. (Reference 49 U.S. Code 5308, and 49 CFR 624)

Point of Contact

Federal Transit Administration, Office of Program Management
U.S. Department of Transportation
Phone (202) 366-4020
http://www.fta.dot.gov/index.html

State Energy Program (SEP) Funding

The SEP provides grants to states to assist in designing, developing, and implementing renewable energy and energy efficiency programs. Funding from the SEP is directed to state energy offices, and each state's energy office manages all SEP-funded projects. States may also receive project funding from technology programs in the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE) for SEP Special Projects. EERE distributes the funding through an annual competitive solicitation to state energy offices. For more information about the SEP, including SEP project descriptions, visit the SEP Web site.

Point of Contact

U.S. Department of Energy
Phone (800) 342-5363
Fax (202) 586-4403
http://www.energy.gov

Clean Cities

The mission of Clean Cities is to advance the energy, economic, and environmental security of the United States by supporting local initiatives to adopt practices that reduce the use of petroleum in the transportation sector. Clean Cities carries out this mission through a network of more than 80 volunteer coalitions, which develop public/private partnerships to promote alternative fuels and advanced vehicles, fuel blends, fuel economy, hybrid vehicles, and idle reduction. Clean Cities provides information about financial opportunities, coordinates technical assistance projects; updates and maintains databases and Web sites, and publishes fact sheets, newsletters, and related technical and informational materials. For more information, visit the Clean Cities Web site.

Point of Contact

U.S. Department of Energy
Phone (800) 342-5363
Fax (202) 586-4403
http://www.energy.gov

Small Agri-Biodiesel Producer Tax Credit

An income tax credit of $0.10 per gallon of agri-biodiesel is available to qualified small producers. A small producer is one that produces up to 60 million gallons of agri-biodiesel per year. Agri-biodiesel is defined as diesel fuel derived solely from virgin oils, including esters derived from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, and mustard seeds, and from animal fats. The credit applies only to the first 15 million gallons of agri-biodiesel produced in a tax year and expires December 31, 2008. (Reference 26 U.S. Code 40A)

Point of Contact

U.S. Internal Revenue Service
Phone (800) 829-1040
http://www.irs.gov/

SmartWay Transport Partnership

The SmartWay Transport Partnership is a voluntary partnership between the U.S. Environmental Protection Agency (EPA) and the ground freight industry. It was designed to reduce greenhouse gases and air pollution through increased fuel efficiency. EPA provides Partners with benefits and services that include fleet management tools, technical support, information, public recognition, and use of the SmartWay Transport Partner logo. The SmartWay Transport Partnership is working with states, banks, and other organizations to develop innovative financing options that help Partners purchase devices that save fuel and reduce emissions. Grants are available to states, nonprofits, and academic institutions to demonstrate innovative idle reduction technologies for the trucking industry.

Point of Contact

SmartWay Transport Partnership
U.S. Environmental Protection Agency
Phone (734) 214-4767
Fax (734) 214-4052
smartway_transport@epa.gov
http://www.epa.gov/smartway

Vehicle Incremental Cost Allocation

The U.S. General Services Administration (GSA) is required to allocate the incremental cost of purchasing alternative fuel vehicles across the entire fleet of vehicles distributed by GSA. This mandate also applies to other federal agencies that procure vehicles for federal fleets. (Reference 42 U.S. Code 13212 (c))

Point of Contact

U.S. General Services Administration
Phone (703) 605-5630
AFVteam@gsa.gov
http://www.gsa.gov/afv

Vehicle Acquisition and Fuel Use Requirements for State and Alternative Fuel Provider Fleets

Under the Energy Policy Act (EPAct) of 1992, certain state government and alternative fuel provider fleets are required to acquire alternative fuel vehicles (AFVs). Compliance is required by fleets that operate, lease, or control 50 or more light-duty vehicles within the U.S. Of those 50 vehicles, at least 20 must be used primarily within a single Metropolitan Statistical Area/Consolidated Metropolitan Statistical Area. Those same 20 vehicles must also be capable of being centrally fueled. Covered fleets earn credits for each vehicle purchased, and credits earned in excess of their requirements can be banked or traded with other fleets. Additionally, fleets that use fuel blends containing at least 20% biodiesel (B20) in medium- and heavy-duty vehicles may earn credits toward their annual AFV acquisition requirements.

On March 20, 2007, the U.S. Department of Energy (DOE) issued a final rule on Alternative Compliance (Section 703 of EPAct of 2005), which allows fleets the option to choose a petroleum reduction path in lieu of acquiring AFVs. Interested fleets must obtain a waiver from DOE by proving that they will achieve petroleum reductions equivalent to that achieved by having AFVs running on alternative fuels 100% of the time. For more information, visit the EPAct State and Alternative Fuel Provider Rule Web site, or contact the Regulatory Information Line at (202) 586-9171 or regulatory_info@afdc.nrel.gov.

(Reference 42 U.S. Code 13251 and 13263a, and 10 CFR 490)

Point of Contact

Dana O'Hara
State and Alternative Provider Rule
U.S. Department of Energy
Phone (202) 586-8063
dana.o'hara@ee.doe.gov
http://www1.eere.energy.gov/vehiclesandfuels/epact/state/index.html

Alternative Fuel Infrastructure Tax Credit

A tax credit is available for up to 30% of the cost of installing alternative fueling equipment, not to exceed $30,000. Qualifying alternative fuels are natural gas, liquefied petroleum gas, hydrogen, E85, or diesel fuel blends containing a minimum of 20% biodiesel. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consumers who purchase residential fueling equipment may receive a tax credit of $1,000. The credit is effective for equipment put into service after December 31, 2005, and before December 31, 2009; the credit for hydrogen fueling property expires December 31, 2014. Form 8911 (PDF 247 KB) provides additional information and must be used in order to claim the tax credit. (Reference 26 U.S. Code 30C) Download Adobe Reader

Point of Contact

U.S. Internal Revenue Service
Phone (800) 829-1040
http://www.irs.gov/

Vehicle Acquisition and Fuel Use Requirements for Federal Fleets

Under the Energy Policy Act (EPAct) of 1992, 75% of new light-duty vehicles acquired by certain federal fleets must be AFVs. As amended in January 2008, Section 301 of EPAct of 1992 defines AFVs to include hybrid electric vehicles, fuel cell vehicles, and advanced lean burn vehicles. Federal fleets are also required to use alternative fuels in dual-fuel vehicles unless the U.S. Department of Energy (DOE) determines an agency qualifies for a waiver; grounds for a waiver include the lack of alternative fuel availability and cost restrictions. Fleets that use fuel blends containing at least 20% biodiesel (B20) in medium- and heavy-duty vehicle may earn credits toward their annual requirements. Additionally, Executive Order 13423 requires federal agencies with 20 vehicles or more in their U.S. fleet to decrease petroleum consumption by 2% per year, relative to their Fiscal Year (FY) 2005 baseline, through FY 2015. Agencies must also continue to increase their alternative fuel use by 10% per year, relative to the previous year. For more information, visit the EPAct Federal Fleet Requirements Web site.

Additional requirements for federal fleets were included in the Energy Independence and Security Act of 2007, including low greenhouse gas emitting vehicle acquisition requirements and renewable fuel infrastructure installation. These requirements are dependent upon formal rulemaking by DOE.

(Reference 42 U.S. Code 13212 and Executive Order 13423)

Point of Contact

Federal Fleet Requirements
U.S. Department of Energy
fed_fleets@afdc.nrel.gov
http://www1.eere.energy.gov/femp/about/fleet_requirements.html

Vehicle Acquisition and Fuel Use Requirements for Private and Local Government Fleets

Under the Energy Policy Act (EPAct) of 1992, the U.S. Department of Energy (DOE) was directed to determine whether private and local government fleets should be mandated to acquire alternative fuel vehicles (AFVs). In January 2004, DOE published a final rule announcing its decision not to implement an AFV acquisition mandate for private and local government fleets. In March 2006, the U.S. District Court for the Northern District of California ruled that DOE must mandate AFV acquisitions for private and local fleets, and directed DOE to complete two rulemakings within two years: a final determination on the Private and Local Government Fleet Rule and a new Replacement Fuel Goal. DOE issued a final rulemaking on the new Replacement Fuel Goal in March 2007 extending the EPAct of 1992 goal to 2030. The goal is to achieve a domestic production capacity for replacement fuels sufficient to replace 30% of the U.S. motor fuel consumption. In September 2007, DOE issued a Notice of Propose Rulemaking (NOPR) for the Alternative Fuel Transportation Program; Private and Local Government Fleet Determination. DOE is expected to issue a final rule in March 2008. For more information on the Private and Local Government Fleet Rule compliance, visit the EPAct Private and Local Government Fleet Rule Web page. (Reference 42 U.S. Code 13257)

U.S. EPA Raises the Renewable Fuels Standard for 2008

In response to the Energy Independence and Security Act of 2007 (EISA), signed into law by President Bush in December 2007, the U.S. Environmental Protection Agency (EPA) has subsequently the increased the 2008 Renewable Fuels Standard (RFS) to 7.76% in order to meet the new requirement that all transportation fuels sold contain a minimum of 9 billion gallons of renewable fuel in 2008, as set by the EISA. To determine these volumes, EPA calculates the percentage-based standard annually, which applies to refiners, importers, and non-oxygenate blenders of gasoline. The new RFS supersedes the 2008 RFS that EPA published in November 2007, prior to the enactment of the EISA.

The EISA requires an increase in the overall volume of renewable fuels that must be blended into transportation fuels each year, increasing to 36 billion gallons per year by 2022. In addition, beginning in 2013, a certain percentage of the renewable fuels must be advanced and/or cellulosic based biofuels and biomass-based diesel. For more information on these requirements and the RFS program, visit the EPA's RFS Program Web site as well as the RFS information on the Federal Incentives & Laws Web site.

Energy Independence and Security Act of 2007 Signed Into Law

President Bush signed the Energy Independence and Security Act (EISA) of 2007 (House Resolution 6), designed to improve vehicle fuel economy and help reduce U.S. dependence on oil. EISA aims to increase the supply of alternative fuel sources by setting a mandatory Renewable Fuel Standard (RFS) requiring transportation fuel sold in the U.S. to contain a minimum of 36 billion gallons of renewable fuels by 2022, including advanced and cellulosic biofuels and biomass-based diesel. In addition, the law requires the Corporate Average Fuel Economy (CAFE) standard to reach 35 miles per gallon by the year 2020. The EISA is projected to reduce energy consumption by 7% and greenhouse gas emissions by 9% by 2030. For a summary of the major provisions set forth by the legislation, visit the Energy Independence and Security Act of 2007 page of the Federal Incentives & Laws Web site. The complete legislation can be viewed on the Library of Congress Web site.

Biobased Products and Bioenergy Program

The goal of the Biobased Products and Bioenergy Program is to help finance technologies that are needed to convert biomass into biobased products and bioenergy in a cost-competitive manner in national and international markets. Loans for biomass conversions are eligible for financing under the Business and Industry Guaranteed Loan Program. For the purpose of this program, biomass is defined as any organic matter that is available on a renewable or recurring basis, excluding timber, and including dedicated energy crops and trees, agricultural food and feed crop residues, aquatic plants, wood and wood residues, animal wastes, and other waste materials. A biobased product is considered any commercial or industrial product that utilizes biological products or renewable domestic agricultural or forestry materials, including biofuels. For more information, visit the Biobased Products and Bioenergy Program Web site and contact the appropriate State Rural Development Office. (Reference 7 U.S. Code 8109)

Point of Contact

Office of Rural Development
U.S. Department of Agriculture
Phone (202) 690-4730
http://www.rurdev.usda.gov/rd/energy/

Biomass Research and Development Initiative

The U.S. Department of Agriculture Office of Rural Development, in conjunction with U.S. Department of Energy, provides grant funding for projects addressing research and development of biomass-based products, bioenergy, biofuels, and related processes under the Section 9008 Biomass Research and Development Initiative. Eligible recipients may receive up to $1 million for projects that involve feedstock production for biobased fuels and products, converting cellulosic biomass into biobased fuels, technologies for co-producing biobased products in biofuel production facilities, and strategic guidance for improving overall sustainability and environmental quality of biomass technologies. For more information, visit the Section 9008 Program Web site and contact the appropriate State Rural Development Office. (Reference 7 U.S. Code 8601)

Point of Contact

Office of Rural Development
U.S. Department of Agriculture
Phone (202) 690-4730
http://www.rurdev.usda.gov/rd/energy/

Value-Added Producer Grants (VAPG)

The U.S. Department of Agriculture Office of Rural Development awards Value-Added Producer Grants for planning activities and working capital for marketing value-added agricultural products and farm-based renewable energy. Eligible applicants include independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures. Eligible participants may apply for either a planning grant or a working capital grant, but not both. In addition, no more than 10% of program funds may be awarded to majority-controlled producer-based business ventures. Grants will only be awarded if projects are determined to be economically viable and sustainable. For more information about grant eligibility, visit the VAPG Web site and contact the appropriate State Rural Development Office. (Reference 7 U.S. Code 1621)

Point of Contact

Office of Rural Development
U.S. Department of Agriculture
Phone (202) 690-4730
http://www.rurdev.usda.gov/rd/energy/

Alternative Transportation in Parks and Public Lands Program

The Alternative Transportation in the Parks and Public Lands Program provides funding to support public transportation projects in parks and on public lands. The goals of the program include conservation of natural, historical, and cultural resources, and reduced congestion and pollution. The Federal Transit Administration administers the program while partnering with the Department of the Interior and the Forest Service to provide for technical assistance in alternative transportation options. Eligible projects include capital and planning expenses for alternative transportation systems such as clean fuel shuttle vehicles. For more information, see the Alternative Transportation in Parks and Public Lands fact sheet. (Reference 49 U.S. Code 5320)

Point of Contact

Federal Transit Administration, Office of Program Management
U.S. Department of Transportation
Phone (202) 366-4020
http://www.fta.dot.gov/index.html

Biobased Transportation Research Funding

The Surface Transportation Research, Development, and Deployment (STRDD) program funds activities to promote innovation in transportation infrastructure, services, and operations. A portion of the funding made available to the STRDD program is set aside for the Biobased Transportation Research program to carry out biobased research of national importance at research centers and through the National Biodiesel Board. For more information, see the STRDD Program fact sheet. (Reference 23 U.S. Code 502 and 7 U.S. Code 8109)

Point of Contact

Federal Highway Administration
U.S. Department of Transportation
http://www.fhwa.dot.gov/index.html

Voluntary Airport Low Emission (VALE) Program

The goal of the VALE program is to reduce ground level emissions at commercial service airports located in designated ozone and carbon monoxide air quality nonattainment and maintenance areas. The VALE program provides funding through the Airport Improvement Program and the Passenger Facility Charges program for the purchase of low-emission vehicles, development of fueling and recharging stations, implementing gate electrification, and other airport air quality improvements. (Reference 49 U.S. Code 40101)

Point of Contact

Jake Plante
Federal Aviation Administration, Airports Environmental Office
U.S. Department of Transportation
Phone (202) 493-4875
jake.plante@faa.gov
http://www.faa.gov/airports_airtraffic/airports/environmental/vale/

Clean Agriculture USA

Clean Agriculture USA is a voluntary program that promotes the reduction of diesel exhaust emissions from agricultural equipment and vehicles by encouraging proper operations and maintenance by farmers, ranchers, and agribusinesses, use of emission-reducing technologies, and use of cleaner fuels. Clean Agriculture USA is part of the U.S. Environmental Protection Agency's National Clean Diesel Campaign, which offers funding for clean diesel agricultural equipment projects.

Point of Contact

Trish Koman
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone (734) 214-4955
Fax (734) 214-4869
koman.trish@epa.gov
http://www.epa.gov/cleandiesel/

National Clean Diesel Campaign (NCDC)

The NCDC was established by the U.S. Environmental Protection Agency to reduce pollution emitted from diesel engines through the implementation of varied control strategies and the involvement of national, state, and local partners. The NCDC includes programs for existing diesel fleets, regulations for clean diesel engines and fuels, and regional collaborations and partnerships.

Point of Contact

Jennifer Keller
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone (202) 343-9541
keller.jennifer@epa.gov
http://www.epa.gov/cleandiesel/

Renewable Fuel Standard (RFS) Program

The national RFS Program was developed to increase the volume of renewable fuel that is blended into gasoline and other transportation fuels. As required by the Energy Policy Act of 2005, the U.S. Environmental Protection Agency (EPA) finalized RFS Program regulations, effective September 1, 2007. The Energy Independence and Security Act of 2007, signed into law in December 2007, increased and expanded this standard. In 2008, 9 billion gallons of renewable fuel must be used, increasing to 36 billion gallons per year by 2022. Beginning in 2013, a certain percentage of the renewable fuels must be advanced and/or cellulosic based biofuels and biomass-based diesel, pending final rulemaking by EPA. Cellulosic biofuel is defined as any renewable fuel derived from cellulose, hemicellulose, or lignin, and achieves a 60% greenhouse gas (GHG) emissions reduction. Advanced biofuel is defined as any renewable fuel, other than ethanol derived from corn, derived from renewable biomass, and achieves a 50% GHG emissions reduction.

Each year, EPA will determine the Renewable Volume Obligation (RVO) for parties required to participate in the RFS Program. This standard is calculated as a percentage, by dividing the amount of renewable fuel (gallons) required by the RFS to be blended into gasoline for a given year by the amount of gasoline/transportation fuel expected to be used during that year. Any party that produces gasoline for use in the U.S., including refiners, importers, and blenders (other than oxygenate blenders), is considered an obligated party under the RFS Program. Parties that do not produce, import, or market fuels within the 48 contiguous states are exempt from the renewable fuel tracking program. Small refineries and refiners are also exempt from the program until 2011. A small refinery is defined as one that processes fewer than 75,000 barrels of crude oil per day, has a total crude capacity of less than 150,000 barrels per day, and employs fewer than 1,500 employees company-wide. All obligated parties are expected to meet their RVO beginning in 2007.

To facilitate and track compliance with the RFS, a producer or importer of renewable fuel must generate Renewable Identification Numbers (RINs) to represent renewable fuels produced or imported by the entity on or after September 1, 2007, assigned by gallon or batch. Assigned RINs are transferred when ownership of a batch of fuel occurs, but not when fuel only changes custody. A trading program is in place to allow obligated parties to comply with the annual RVO requirements through the purchase of RINs. Obligated parties must register with the EPA in order to participate in the trading program. For each calendar year, an obligated party must demonstrate that it has sufficient RINs to cover its RVO. RINs may only be used for compliance purposes in the calendar year they are generated or the following year. Obligated parties must report their ownership of RINs to the EPA's Office of Transportation and Air Quality on a quarterly and annual basis.

(Reference 42 U.S. Code 7545(o) and 40 CFR 80.1100-80.1167)

Point of Contact

U.S. Environmental Protection Agency
Phone (202) 272-0167
http://www.epa.gov

Alternative Fuel Definition

The following fuels are defined as alternative fuels by the Energy Policy Act (EPAct) of 1992: pure methanol, ethanol, and other alcohols; blends of 85% or more of alcohol with gasoline; natural gas and liquid fuels domestically produced from natural gas; liquefied petroleum gas (propane); coal-derived liquid fuels; hydrogen; electricity; pure biodiesel (B100); fuels, other than alcohol, derived from biological materials; and P-Series fuels. In addition, the U.S. Department of Energy (DOE) is authorized to designate other fuels as alternative fuels, provided that the fuel is substantially nonpetroleum, yields substantial energy security benefits, and offers substantial environmental benefits. For more information about the alternative fuels defined by EPAct 1992 as well as DOE's alternative fuel designation authority, visit the EPAct Web site. (Reference 42 U.S. Code 13211)

Point of Contact

U.S. Department of Energy
Phone (800) 342-5363
Fax (202) 586-4403
http://www.energy.gov

Loan Guarantee Program

The U.S. Department of Energy (DOE) provides loan guarantees to eligible projects that reduce air pollution and greenhouse gases, and support early commercial use of advanced technologies, including biofuels and alternative fuel vehicles. The loan guarantee program is not intended for research and development projects. DOE may issue loan guarantees for up to 100% of the amount of the loan for an eligible project. For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Department's Federal Financing Bank. For additional program guidelines and solicitation announcements, please visit the Loan Guarantee Program Web site. (Reference 42 U.S. Code 16513)

Point of Contact

U.S. Department of Energy
Phone (800) 342-5363
Fax (202) 586-4403
http://www.energy.gov

Biodiesel Mixture Excise Tax Credit

Biodiesel blenders registered with the Internal Revenue Service (IRS) are eligible for a volumetric excise tax credit in the amount of $1.00 per gallon of pure agri-biodiesel (e.g. biodiesel made from soybean oil) blended with petroleum diesel, or $0.50 per gallon of pure biodiesel made from other sources (e.g. waste grease) blended with petroleum diesel. Only entities that are registered with the IRS and have produced and sold or used the qualified biodiesel mixture as a fuel in their trade or business are eligible for the credit. Eligible blenders must have a certificate from the biodiesel (B100) producer or importer identifying the product as biodiesel or agri-biodiesel, confirming that it is properly registered as a fuel with the U.S. Environmental Protection Agency and that it meets the requirements of American Society for Testing and Materials (ASTM) specification D6751. Form 720 (PDF 498 KB) may be used to claim the excise tax credit on a quarterly basis; see the Instructions for Form 720 (PDF 152 KB) for more information. This tax credit expires December 31, 2008. (Reference 26 U.S. Code 6426) Download Adobe Reader

Point of Contact

U.S. Internal Revenue Service
Phone (800) 829-1040
http://www.irs.gov/

Biodiesel Income Tax Credit

An entity that delivers pure, unblended biodiesel (B100) into the tank of a vehicle or uses B100 as an on-road fuel in their trade or business, may be eligible for a nonrefundable income tax credit in the amount of $1.00 per gallon of agri-biodiesel (e.g. biodiesel made from soybean oil), or $0.50 per gallon of pure biodiesel made from other sources (e.g. waste grease). The volumetric excise tax does not apply to the sale or use of B100. Eligible entities must have a certificate from the biodiesel (B100) producer or importer identifying the product as biodiesel or agri-biodiesel, confirming that it is properly registered as a fuel with the U.S. Environmental Protection Agency and that it meets the requirements of American Society for Testing and Materials (ASTM) specification D6751. (Reference 26 U.S. Code 40A)

Point of Contact

U.S. Internal Revenue Service
Phone (800) 829-1040
http://www.irs.gov/

Congress Passes Food, Conservation, and Energy Act of 2008 (Farm Bill)

In May, Congress overrode a presidential veto to pass the Food, Conservation, and Energy Act of 2008 (House Resolution 2419), which provides funding for commodity, rural development, conservation, and energy programs. The bill includes language that authorizes $1 billion in funds for renewable energy programs and new feedstock production, and reauthorizes many 2002 Farm Bill programs, including the Biomass Research and Development Initiative, the Biobased Products and Bioenergy Program, and a biodiesel education program. The bill also allows for a cellulosic biofuel production credit. The complete legislation can be viewed on the Library of Congress Web site.